Want AI Exposure? SOXX and CHAT Take Very Different Paths to the Same Theme.

Key Points

• Roundhill Investments - Generative AI & Technology ETF offers a significantly higher dividend yield and lower maximum drawdown than iShares Semiconductor ETF, though it carries a higher expense ratio.

• iShares Semiconductor ETF provides concentrated exposure to around 30 semiconductor stocks, while Roundhill Investments - Generative AI & Technology ETF holds more positions across technology, communication services, and consumer cyclicals.

• While iShares Semiconductor ETF delivered higher total returns over the trailing 12 months, Roundhill Investments - Generative AI & Technology ETF shows stronger growth on a $1,000 investment over a two-year horizon.

• 10 stocks we like better than Tidal Trust II - Roundhill Generative Ai & Technology ETF ›

iShares Semiconductor ETF (NASDAQ:SOXX) offers concentrated, low-cost access to the chip sector, while Roundhill Investments - Generative AI & Technology ETF (NYSEMKT:CHAT) provides actively managed, diversified exposure to artificial intelligence.

Investors looking to capitalize on the artificial intelligence boom often choose between pure-play hardware exposure and broader software-and-service themes. These two funds offer distinct paths: one focusing strictly on the components powering the movement and the other targeting the broader generative AI ecosystem.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Roundhill Investments fund is notably more expensive, with an expense ratio of 0.75% compared to 0.34% for the iShares ETF. The 0.41 percentage point difference in fees represents a trade-off for active management. However, the Roundhill fund offers a much higher payout to investors, with a 2.00% dividend yield.

Performance & risk comparison

What's inside

Roundhill Investments - Generative AI & Technology ETF is an actively managed fund launched in 2023 that currently holds 43 positions. The fund targets the generative AI theme through a mix of sectors, including technology at 73%, communication services at 19%, and consumer cyclicals at 7%. Its largest positions include Nvidia (NASDAQ:NVDA) at 6.79%, Alphabet (NASDAQ:GOOGL) at 6.76%, and Advanced Micro Devices Inc (NASDAQ:AMD) at 5.79%. It paid $1.68 per share over the trailing 12 months.

In contrast, iShares Semiconductor ETF tracks an index of 34 U.S.-listed semiconductor equities and was launched in 2001. The portfolio is 100% concentrated in the technology sector, specifically focusing on the chipmakers that provide the hardware foundation for modern computing. Its top holdings include Micron Technology (NASDAQ:MU) at 10.16%, Advanced Micro Devices (NASDAQ:AMD) at 9%, and Intel (NASDAQ:INTC) at 7.48%. The fund has a trailing-12-month dividend of $1.67 per share and reports no specific portfolio quirks, offering a straightforward, passively managed approach to the industry.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

Artificial intelligence has become the defining investment theme of this decade, and both SOXX and CHAT offer a way for investors to participate. But they answer a fundamentally different question about where AI's biggest rewards will land.

SOXX makes the case that chips are the backbone of everything. Every AI application, from chatbots to autonomous vehicles, depends on semiconductor infrastructure to function. That thesis drove a 40% gain in 2025 and has rewarded patient investors handsomely over SOXX's 25-year history.

CHAT argues that the real money is in what gets built on top of those chips: the platforms, software tools, and AI applications that reach billions of users. That's a compelling case, but one with a shorter track record of only a few years to back it up.

The fee gap between these ETFs is worth attention, too. CHAT charges more than twice what SOXX does, meaning active management needs to deliver meaningfully better outcomes to justify the difference. SOXX is the more battle-tested, lower-cost entry point for investors new to the AI theme. CHAT suits those who want a broader, more ambitious bet on where AI is ultimately headed.

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Sara Appino has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Intel, Micron Technology, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.